Montana LLC Filing Requirements
A Montana LLC (i.e., Limited Liability Company) helps you get the most out of your assets with minimum fees. You benefit from avoiding double taxation and, at the same time, can protect your belongings from company debts.
To start your LLC in Montana, you will need to file paperwork with the Montana Secretary of State. Both residents and non-residents must follow the same procedures. This article will detail exactly what you need to do to create your brand new LLC.
Benefits of Forming a Montana LLC
In Montana, having your LLC will serve you the following benefits:
- Since Montana does not charge sales tax, buying vehicles with an LLC is more affordable. Moreover, Montana LLCs enjoy the rights of a state citizen. So you can get better deals by purchasing their vehicle through their Montana LLC. For example, if you’re a resident of California buying a new car for $50,000, you will save up to $2,776 in terms of registration fees.
- It offers liability protection. If an accident caused injury or property damage, your business would have liability protection to safeguard you from risky lawsuits.
- You receive privacy. If your personal information is important to you, you’ll need to file your LLC’s information instead of yours. So your name will not have to be attached to your assets’ legal title or registration.
Things You Need to Do
Here is a brief overview of the registering process for an LLC in Montana:
- Name your LLC
- Select a Registered Agent
- File legal documents
- Create an operating agreement
- Receive your EIN
Upon receiving your EIN, your Montana LLC will be formed. We will now detail this series of steps for your perusal.
Step-1: Naming Your Montana LLC
The first and most crucial step to forming an LLC in Montana is deciding its name. The name you select will be what legal documents and potential customers refer to your LLC. Therefore, ensure your name adheres to Montana’s naming guidelines and is easy to read.
Detailed naming guidelines are as follows:
- The name you select will need to include the phrase “limited liability company” or its abbreviation (LLC, L.L.C.).
- Your name can’t include words that could be confused with another LLC or other government/private entities.
- Your name will need to be unique. So please be sure to ascertain that the name you want for your LLC isn’t already taken.
You can do this by visiting the Montana Secretary of State’s website and doing a name search.
Additionally, you might want to check if your business name is available as a web domain if you plan to make a website for your LLC.
If you have trouble coming up with a unique name for your LLC or simply don’t want to spend a lot of time worrying about it, you can always use an LLC Name Generator.
Step-2: Select a Registered Agent
You must pick a Montana registered agent for your LLC. Although you can be your registered agent, it can be time-consuming for you to sort out the legalities of your business on your own.
A registered agent can be an individual or a business entity who serves as the point of contact between you and the Montana state concerning LLC matters. They will generally receive legal paperwork and have to be responsible for making them legible to you.
The registered agent you pick will need to either be a resident of Montana or be a business that has been legally authorized to offer such services in Montana. Most agencies will be able to file your Articles of Organization for you.
Step-3: File Legal Documents
To register your Montana LLC officially, you will need to file the Articles of Organization with the Secretary of State. You can choose to do this online. To file the documents, you will need to make a non-refundable payment of $70 to the Secretary of State.
You should be mindful of the following information as you complete the legal paperwork:
- The name and the type of your LLC
- The legal name of your registered agent and their address
- The business purpose for creating the LLC
- The length of time your LLC will exist
- The management structure of your LLC
Step-4: Create an Operating Agreement
An operating agreement is a legal document that outlines your LLC’s ownership and management structure.
Although it is not a requirement, it is good practice to have an operating agreement for your LLC. It makes the operating procedures transparent and, as a result, reduces future conflict amongst the business members.
The operating agreement is an internal document you keep for future reference, but you don’t need to file with the state.
Step-5: Receive Your EIN
EIN stands for your Employee Identification Number. It is a 9-digit number issued by the Internal Revenue Service (IRS) to help identify businesses for tax purposes.
Why do you need an EIN? Because without it, you can not open a business bank account. You will also need to file and manage your federal and state taxes, and you can only do that once you know your EIN.
You can get your LLC’s EIN for free from the IRS. You will first need to request it through a relatively straightforward process.
Visit this website to apply online for the EIN. You can also apply for one through either mail, or fax.
Additional Information
Here is some additional information that you should consider before starting the filing process.
LLC Type: Member-Managed vs. People-Managed
We recommend determining whether your LLC will be member-managed or people-managed before filling out the legal documents. The former is feasible if your LLC has a small number of members, while the latter works best in a large LLC with many members.
A member-managed LLC is a kind that has its administrative powers shared across its members. That is to say; the members are willing to put in the work and play an active role in everyday decision-making.
A people-managed LLC allocates the administrative decision-making powers to selected managers. This structure offers a more centralized management approach.
Registered Agent Recommendation
There are multiple competing services in Montana. ZenBusiness is a company that helps form your LLC and gives you free registered agent service for the entire first year. Moreover, this service costs just $39 with state fees added on.
Another company is All Day $49 Montana Registered Agent LLC, which also offers an entire year of registered agent service at $49. It provides wholesale pricing on its agency service regardless of how many LLCs you want to operate and has integrated digital services.
Lawyer Requirements
You don’t need a lawyer to file a Montana LLC. Agencies and registered agents can help you navigate through the legal specificities of your LLC registration. So you do not need to hire an extra attorney for this.
EIN Processing Time
The Secretary of State will process your paperwork and send you your EIN within 7-10 business days. Furthermore, you can expedite the process by paying an additional $20 for 24-hour processing or $100 for 1-hour processing.
Conclusion
The registration process for an LLC can seem daunting at first. But it becomes more straightforward once you know the filing requirements. By following the steps outlined, you will be able to form your very own Montana LLC with little to no difficulty.
If you are still having issues, feel free to take the help of an approved agency. Your agency will cover all legal specificities, minimizing the paperwork and saving you time.
We hope this article helped you better understand the filing requirements for a Montana LLC!
